Audit Risk and planning

Anonymous
timer Asked: Sep 11th, 2017
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Question Description

I need answer for following two questions appx 700 words. you can check whole assignment from the attachment - Harvard reference style


Going concern

 Given the financial results and based on the information you have gathered, is there a potential going concern issue? Explain. (5 marks)

Social Responsibility

 You have also been requested to research the company’s social responsibility information and provide a summary in your report. As part of the audit engagement, would you recommend an external assurance for the Sustainability Report? Explain.

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ACC3AUD AUDIT ASSIGNMENT- SEMESTER 2, 2017 Department of Accounting La Trobe University AUDIT RISK & PLANNING (20% of overall subject assessment) You are part of the audit team required to prepare a report to the senior partners of your auditing firm. This report will be used as part of the information provided to the audit team. You and your colleagues have been assigned to prepare a report based on your research of Billabong International Limited (Billabong). Assume that this is the first time that the audit will be conducted by your audit firm, La Trobe Partners. The report must cover the areas detailed below. This will require extensive research and critical analysis of the annual reports and any other information that you have obtained. http://www.billabongbiz.com/phoenix.zhtml?c=154279&p=irol-irhome In your report you must address the following issues: 1. Provide an overview of the client’s business and industry in which it operates. The overview must include a discussion on recent developments. (5 marks) 2. What are the significant business and/or audit risks for Billabong? You need to explain at least FIVE (5) risks. DO NOT DISCUSS THE AUDIT RISK MODEL. (7.5marks) 3. Referring to the financial statements for 2016   Calculate and comment on the listed ratios below. also include a comparison with the Industry figures. Ratio Summary Table Ratio 2015 2016 I. Current ratio ii. Debt-to-equity ratio iii. Gross Profit Margin iv. Inventory turnover v. Trade Receivables turnover Your comments must Industry 2 1 60% 4 times 6 times (10 marks) La Trobe University ACC3AUD2017s2 Assignment 1/3 4. Material misstatements  Based on your ratio calculations and assessment of the client’s business and audit risks, identify 5 areas of risk of material misstatement in the financial statements.  Explain why these particular areas are risky. (7.5 marks) 5. Going concern  Given the financial results and based on the information you have gathered, is there a potential going concern issue? Explain. (5 marks) 6. Social Responsibility  You have also been requested to research the company’s social responsibility information and provide a summary in your report. As part of the audit engagement, would you recommend an external assurance for the Sustainability Report? Explain. (5 marks) Grand total/40 marks Final mark/20 marks Submission details The report must be completed in groups of three (3). Word count: 3000 words The assignment must be submitted via LMS (Turnitin) by Wednesday September 13, 2017, 5pm. Presentation Requirements The assignment must be presented in the following format:       The cover sheet must include the subject code, report title, date, student names, student ID and workshop details of each student. Table of contents. Executive summary. Main body of the report (This must cover sections 1 to 6 inclusive as outlined above). Conclusion References. La Trobe University ACC3AUD2017s2 Assignment 2/3 The total word count should be 3000 words (additional words are permitted for attachments, appendices and references). Please use size 12 font; 14 or 16 font may be used for headings only; double spacing between paragraphs and each page must be numbered. Please use appropriate references for resources used including accounting and auditing standards; regulations; and the Corporations Act 2001 etc. Failure to meet the above format and presentation requirements will incur a 5 mark penalty. Late Submission Late submission of the assignment will attract a penalty of 5% of the marks for the assignment (20) per day according to the University policy. Please refer to the Subject Learning Guide for details. La Trobe University ACC3AUD2017s2 Assignment 3/3 ...
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Tutor Answer

Emilyprofessor
School: UC Berkeley

Attached.

1

Running Head: REPORT

Report

Institutional affiliation

Date

REPORT

2
Billabong International Limited (Billabong)

Going concern
Given the financial results and based on the information I have gathered, there are potential
going concern issues on Billabong International Limited (Billabong). Billabong has a pressing
need for an additional equity. Primarily, it has been a highly discussed issue but with a limited
capacity to cope with external shocks, and its debt is expensive. With lack of significant
reduction in debt it will be a risk for the organization to breach the gearing covenant in its senior
debt facility. In order to be able to earn a meaningful recovery in the business, there is a need for
the company to invest of brands that are able to drive growth initiatives of the company. Such
initiative can encompass a ren...

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Review

Anonymous
Good stuff. Would use again.

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